Aim-listed AfriTin Mining has signed a nonbinding memorandum of understanding (MoU) with Swiss precious metals distributor MRI Trading regarding the establishment of an artisanal buying operation for tin concentrate in Namibia.
AfriTin intends to explore, with MRI, the possibility of sourcing cassiterite concentrate from local artisanal miners to establish early cash flows for its Uis tin mine.
This proposal could also add value to the people of Damaraland, in Namibia, by providing economic opportunities to the community.
Additionally, AfriTin and MRI will explore establishing a buying station, which would allow for the analysis of the material offered by the artisanal miners. The results of the analysis from such a buying station will determine whether material is bought or rejected.
The terms of the nonbinding MoU are still subject to further discussion and negotiation, but include MRI providing funding of up to $200 000 for the setup operation of the proposed buying station for an initial 12-month period, which will include the required equipment, working capital and employing an on-the-ground trader or manager.
Conditional execution of an offtake contract is also included in the MoU terms, whereby MRI will have the exclusive right to all material bought from the artisanal miners through the buying station. AfriTin will receive 50% of the net profits received by MRI resulting from the on-sale of the artisanal material.